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CMHC’s house price analysis and assessment aims to identify potential risks in Canadian real estate by evaluating economic, financial and demographic factors in a total of 15 housing markets.

The agency uses four factors to identify the level of risk present in regional housing markets: overheating of demand, accelerating price growth, overvaluation of prices and overbuilding.

Overall, CMHC says it has found strong evidence of problematic conditions in Toronto, Calgary, Saskatoon and Regina. In Toronto, CMHC says it has found evidence of price acceleration and overvaluation and is also looking at the possibility that overbuilding could become an issue, particularly in the condo market.

“As more centres are now showing problematic overbuilding conditions, inventory management is becoming more important,” Bob Dugan, CMHC’s chief economist, said in a statement.